Ripple offloads nearly $200m in XRP; will this thwart its growing signs of bullishness?

Ripple offloads nearly $200m in XRP; will this thwart its growing signs of bullishness?

XRP has seen some decent bullishness over the past several days, which has allowed the cryptocurrency to secure what appears to be a strong foothold within the mid-$0.20 region.

This bullishness has come about in the face of turbulence within the aggregated crypto markets, with Bitcoin struggling to break through the intense resistance that exists between $9,500 and $9,600.

Although XRP’s market structure appears to be highly bullish at the moment, it is important to note that Ripple – the San Francisco-based FinTech company with close ties to XRP – recently received nearly $200 million worth of tokens from their escrow account, meaning that the crypto may soon see a strong selloff.

XRP’s technical situation grows bullish as it continues inching higher

At the time of writing, XRP is trading up just under one percent at its current price of $0.255, which marks a notable climb from its daily lows of roughly $0.24 that was set around this time yesterday.

It is important to note that XRP has been outperforming Bitcoin over the past 24-hours, and the cryptocurrency appears to be shaping up to see significant further upside in the near-term.

CryptoBirb, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that he is more bullish on XRP than he has ever been before, noting that there are a few key factors that warrant his bullishness.

“First time ever I am bullish on XRP in my entire career. Here’s why: – 7-month consolidation – price action near range lows – solid HTF bullish momentum divergence – major altcoin sleeping giants slowly awaking – might be good addition for steady long-term growth.”

XRP Ripple
Image Courtesy of CryptoBirb

Could Ripple single-handedly thwart this bullish market structure?

Many analysts and investors alike have attributed much of XRP’s bearishness in 2019 to Ripple’s quarterly token sales.

It is possible that the company will continue providing a steady stream of selling pressure on the token, as they just unlocked nearly $200 million worth of XRP that could soon be sold on the open markets.

Jacob Canfield – another prominent cryptocurrency analyst on Twitter – spoke about this latest escrow unlock, noting that the two consecutive escrow transfers total at 700 million XRP worth roughly $178 million.

XRP

This latest escrow unlock could be a test of buyer’s strength, as sustained upward momentum could signal that the crypto will see significant further gains in spite of Ripple’s quarterly token sales.

XRP

6 Feb at 11:04 am UTC

$0.28

2.26%

XRP, currently ranked #3 by market cap, is up 2.26% over the past 24 hours. XRP has a market cap of $12.26B with a 24 hour volume of $2.9B.

XRP Price Chart

XRPUSD Chart by TradingView

Like what you see? Subscribe for daily updates.